Estates and Future Interests Flashcards
Under modern law, a conveyance from “O to A” creates which interest in A?
Fee Simple Absolute
Which future interest follows a gap in possession or divests the estate of the transferor?
Springing Executory Interest
What is a Springing Executory Interest?
A future interest that follows a gap in possession or divests the estate of the transferor.
What is a Shifting Executory Interest?
A shifting executory interest does not follow a gap in possession or divest the estate of the transferor. A shifting executory interest is a future interest that divests the interest of another transferee.
If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does B have?
Vested remainder subject to total divestment
What is a Vested Remainder Subject to Open?
A vested remainder subject to open is a remainder created in a class of persons that is certain to take on the termination of the preceding estate, but is subject to diminution by reason of other persons becoming entitled to share in the remainder.
What is an Indefeasibly Vested Remainder?
An indefeasibly vested remainder is a remainder that (i) can be created in and held only by an ascertained person in being, (ii) must be certain to become possessory on the termination of the prior estate, (iii) must not be subject to being defeated or divested, and (iv) must not be subject to being diminished in size.
At common law, if O conveyed property “to A for life, then to B’s heirs” and A predeceased B, B’s heirs would have:
No Interest. A contingent remainder must vest prior to or upon termination of the preceding estate or it is extinguished. One cannot have heirs until death, thus if A died while B was alive, the interest would not have a destination, and would revert back to A.
A grantor who conveys a fee simple subject to a condition subsequent retains __________.
A right of entry.
The Rule Against Perpetuities provides:
certain interests in property are void if there is any possibility, however remote, that they may vest more than 21 years after some life in being at the creation of the interest.
If T devises property “to B’s children,” and B has at least one child living at all relevant times, when does the class of “B’s children” close?
At T’s death.
Pursuant to the rule of convenience, when the beneficiaries of an outright gift are a class, the class closes when:
the will becomes effective.
At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a __________.
Tenancy in Common.
What will sever a joint tenancy?
An inter vivos conveyance by one joint tenant.
If A, B, and C own property as joint tenants, and A conveys his interest to D, what interests do the parties own on B’s death?
C owns a 2/3 interest, and D owns a 1/3 interest
The distinguishing feature of a joint tenancy is
the right of survivorship. When property is held by three or more joint tenants, one joint tenant’s conveyance destroys the joint tenancy only as to that interest.
What property interests are not subject to the Rule Against Perpetuities?
Future interests in the grantor (i.e., reversions, possibilities of reverter, and rights of entry) are not subject to the Rule.
If O conveys property “to A for her support until she remarries,” what interest does A have?
Fee Simple Determinable.
What is Fee Simple Determinable?
A fee simple determinable is an estate that automatically terminates on the happening of a stated event and reverts to the grantor. It is created by the use of durational, adverbial language, such as “for so long as,” “while,” “during,” or “until.”
What acts will not sever a tenancy by the entirety?
Execution of a Creditor of one Spouse. A tenancy by the entirety is a marital estate akin to a joint tenancy between husband and wife.
A __________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.
Forfeiture
A disabling restraint provides that
any attempted transfer of the property is ineffective.
A promissory restraint provides that
the grantee covenants not to transfer the property.
For the purpose of determining the validity of interests under the Rule Against Perpetuities, when does the perpetuity period begin to run?
For irrevocable trusts, the perpetuities period begins to run on the date the trust is created.
A co-tenant has the right to possess:
The entire estate.
If O conveys property “to A for life, then to B’s heirs” and A predeceases B, at common law the heirs’ interest is void under the __________.
Rule of Destructibility of Contingent Remainders
In general, a life tenant commits voluntary waste when he:
Consumes or exploits natural resources on the property
What is NOT a future interest in the grantor?
A Remainder.
Which interest violates the Rule Against Perpetuities and is stricken if it follows a defeasible fee and has no limit on the time within which it must vest?
An executory interest.
Life tenants are obligated to make which payments on a mortgage on the land?
Only the interest.
O conveys property “to charity A, but if the premises are no longer used as a museum, to charity B,” charity A has __________ and charity B has __________.
A fee simple subject to an executory interest; an executory interest.
What unities are required to create a joint tenancy?
Time, Title, Interest, Possession
In the case of a deed, the perpetuities period begins to run on the date:
the deed is delivered with the intent to pass title.
A tenancy by the entirety can be terminated by:
Mutual Agreement of the Spouses.
A vested remainder subject to total divestment arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to:
being defeated by the happening of a condition subsequent.
If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does C have?
Shifting executory interest.
n most states, when tenants by the entirety divorce, they hold the property as __________.
Tenants in Common
A conveyance from O “to A for life, and A covenants not to transfer her interest to anyone” contains a __________ restraint.
Promissory
What interest arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to being defeated by the happening of a condition subsequent?
Vested remainder subject to total divestment
If O conveys property “to A, but if the premises cease to be used for recreational purposes, then to B,” what interests do the parties have in a jurisdiction that follows the common law Rule Against Perpetuities?
A has a fee simple absolute, and B and O have no interest
Must a co-tenant in possession share profits gained by her personal use of the property with co-tenants out of possession?
No, unless there has been an ouster or agreement to the contrary.
A grantor who conveys a fee simple determinable retains __________.
A possibility of reverter.
Which of the following interests in property are subject to the Rule Against Perpetuities?
Contingent remainders, executory interests, and vested remainders subject to open
If A, B, and C own property as joint tenants, and P obtains a money judgment against A, what interests do the parties own on B’s death?
A owns a 1/2 interest subject to P’s lien, and C owns a 1/2 interest
A __________ restraint provides that any attempted transfer of the property is ineffective.
Disabling
At common law, a contingent remainder must vest prior to or upon termination of the preceding estate or it is extinguished under to the __________.
Rule of Destructibility of Contingent Remainders
A __________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.
Forfeiture
At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a __________.
Tenancy in Common.
